As you are aware that in terms of Rule 8(1)(e) of Securities Contracts (Regulation) Rules, 1957, “no person shall be eligible to be elected as a member if he has been convicted of an offence involving fraud or dishonesty “.

However, it has been observed that in some cases, persons with a past police record who were admitted as a member of the stock exchange had subsequently indulged in fraud and cheating the public

In the light of the above, you are advised to verify the antecedents of the applicant before granting admission as a member of stock exchange and also submit a declaration at the time of forwarding the applications for registration with SEBI, to the effect that the member has not been convicted of any offence involving fraud or dishonesty.